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December 3, 2019 / pxqausnq

Gujarat trying to bail out companies: Congress

first_imgThe Congress on Wednesday questioned the Gujarat government’s decision to form a high-powered committee to resolve the issues in a power purchase agreement signed by the Gujarat Urja Vikas Nigam with four firms, which include Adani Power Limited, Essar Power Gujarat Limited and the Tata-owned Coastal Gujarat Power Limited.The four companies had signed an agreement for long-term procurement of power with the Gujarat government in 2007. In 2012, they filed an appeal saying that the rates should be increased, citing the hike in the rate of coal being imported from Indonesia. The case, after moving through various channels, reached the Supreme Court. On April 11, 2017, the court rejected their claim saying that change in international market cannot be used as an excuse to renegotiate the tariff in India.The Congress claims that the Gujarat government, in order to bypass the Supreme Court, had formed the high-powered committee to bail out these industrialists. “This is another another example of crony capitalism practised by the Modi government,” said Congress leader and Rajya Sabha MP Jairam Ramesh.last_img

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